The Ministry of Mines launched the first tranche of auctions under the exploration licence (EL) regime on Thursday ( 13 March 2025), five months after amending rules to take charge of EL auctions following delays by state governments.

The tranche includes 13 blocks across 10 states, covering deposits of critical and deep-seated minerals such as gold, copper, diamonds, zinc, rare earth elements (REE), vanadium, and zirconium.

About the Critical Minerals Exploration Policy

• India’s Critical Minerals Policy is designed to reduce import dependence, boost domestic production, and ensure secure access to essential minerals required for modern technology, defense, and clean energy.
• It is driven by amendments to the Mines and Minerals (Development and Regulation) Act (MMDR), 2023, introduces systematic exploration, private sector participation, and transparent auctions.

Key Features of the Policy:

Private Sector Involvement: Allows private companies to explore and develop mineral blocks through Exploration Licences (ELs).

Transparent Auction Process: Introduces an auction-based allocation of exploration blocks, ensuring efficiency and competition.

Focus on Deep-Seated Minerals: Encourages the exploration of hard-to-extract minerals like lithium, rare earth elements (REEs), and platinum group metals (PGMs).

Financial Support for Exploration: Provides risk-sharing mechanisms, where 50% of exploration costs are borne by the government if minerals are not found.